Government Support for LNG Duel Fuel Technology

13 April 2011

FORTUNE OIL PLC

("Fortune Oil" or the "Company")

Everthriving LNG Dual Fuel Technology Receives Government Support

Fortune Oil (LSE: FTO.L) is a company listed on the Main Market of the London Stock Exchange focusing on oil, natural gas and resource supply operations and investments, primarily in China.

Fortune Oil is pleased to announce that it had the honour to jointly host a summit with leading industry experts reviewing its Yangtze River ship trial using diesel-LNG dual fuel engine technology.

The summit took place at the Great Hall of the People in Beijing, China with Fortune Oil and its partners The Yangtze Shipping Group and The Everthriving Investment Group inviting over 100 officials and press correspondents from the National Development and Reform Commission (NDRC), China Classification Society (CCS), Ministry of Science and Technology Development, Ministry of Transport, Ministry of Environmental Protection and Chongqing regional government in the same Great Hall of the People for a Achievement News Release Conference after the expert panel review of its Yangtze River ship trial using diesel-LNG dual fuel engine technology.

Fortune Oil is pleased to report that the project received the approval by this panel of top level experts and obtained strong support from each of the above mentioned government agencies to progress the Yangtze River ship project to the deployment phase.

Fortune Oil's partner Yangtze Shipping Group is committed to progress retrofitting its ships with the Everthriving Energy Technology patented dual fuel technology which the experts said "represents the top class in its field in China". As such, Fortune Oil, The Everthriving Investment Group and Yangtze Shipping Group are in the process of negotiating a contract to refit its ships using LNG dual fuel technology. 

Strategy- Fully Integrated LNG Supply Chain

The successful implementation of dual fuel LNG technology to existing diesel engine powered vessels gives Fortune Oil significant first mover advantage in this emerging downstream market. Fortune Oil is also developing a network of LNG refuelling stations along the Yangtze River, providing the Company with a fully integrated LNG supply chain.

In addition, LNG dual fuel technology vastly improves the local air and water quality along the Yangtze River through significant reductions in carbon dioxide emissions, with the vessel operator also benefiting from material fuel cost savings as LNG is typically cheaper than diesel fuel. As a party to the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol, China is committed to reducing harmful carbon dioxide emissions. This LNG dual fuel technology is in line with China's position on fostering consumption of "clean energy."

This is therefore a very positive development all round for China public-private enterprise partnerships, and most importantly the environment, as it increases consumption of "clean energy." 

Mr. Qian Benyuan, Chairman of Fortune Oil, commented:

 "We are absolutely delighted at the outcome of the meetings. This dual fuel LNG technology provides Fortune Oil the platform to partner with China not only along the Yangtze River but throughout China in its effort to significantly reduce carbon dioxide emissions from the shipping sector. This public-private partnership is important to Fortune Oil and we look forward to working with central and local governments in their efforts to deploy "clean energy" technology."

For further details:

Background on Fortune Oil

Fortune Oil is a leading independent energy company engaged in the investment and operations of oil and natural gas supply projects in China. With over 17 years of operating history in China, Fortune Oil has acquired a unique portfolio of high quality oil and natural gas projects across the country and has formed a strong partnership with domestic and international market leaders. Fortune Oil recently started an expansion outside China securing resource projects. Fortune Oil is listed on the Main Market of the London Stock Exchange with its operational headquarters in Hong Kong.

Background on Everthriving Energy Technology

On 1 September 2010 Fortune Oil acquired 65% of Beijing Everthriving Energy Technology Co., Ltd which specializes in diesel oil to LNG dual fuel conversion technology. 

Background on National Development and Reform Commission (NDRC)

To formulate and implement strategies of national economic and social development (including tackling climate change) to the National People's Congress.

Background on China Classification Society (CCS)

To regulate China's shipping industry by issuing rules, regulations and industry technical standards.

 Background on Yangtze Shipping Group

One of the largest shipping companies in the world operating along the Yangtze River committed to converting its ships to LNG dual fuel technology.